Professional Documents
Culture Documents
Introduction to case
Merger of ASEA AB of Sweden and BBC Brown Boveri Ltd. Of
to form it.
Matrix Organization of 850 separate legal entities operating in 140
countries
It is comprised of many independent decentralized business units, each
BBC CONTRIBUTIONS
Strong Order Books
High Technichal Expertise
Power
Products
Power
Systems
Discrete
Automation
and Motion
Low Voltage
Products
Process
Automation
$10 billion
$6.8 billion
$5.6 billion
$4.5 billion
$7.4 billion
(2010 revenues)
Low-voltage products
ABB Group
ORGANISATIONAL
Executive
ARCHITECTURE
OF ABB
Committee
Top Management
Chaired by
CEO.
Business
Segment
Manager
Country
Manager
Business Area
Manager (BA)
Local Operating
Companies
Profit
Center
Manager 1
Profit
Center
manager 2
Middle level
Management
Local Operating
Companies
Profit
Center
Manager 1
Profit
Center
Manager
2
Frontline Management
Frontline Management
local operations.
Empowering employees by giving them responsibility,
accountability and exposure.
Emphasis on communication of culture and a culture of
communication.
Combination of Divisional and Functional organaisation
Strength
Finding and coaching global managers Talent oriented
selection procedure
Robust communication system visibility and transparency
at all levels.
Bringing global technology at door step of local operations.
Strong value systems focused on communication, work ethic
and decisiveness.
Allows employees to work on more than one project
Knowledge about variety of products due to decentralization.
Access to the Global technologies & technical advancements
world wide with mutual contribution with local development
& innovations.
Strength
There is an effective local control in the form of various
Weakness
Two way communication might not always happen
Differences between business area leaders and national
Weakness
Business area are meant for strategy setting ,whereas
clumsy.